Coinbase monitors customers and transmits data to the authorities
Representatives of the Tech Inquiry company were able to disclose details of a government contract that was concluded for 3 years between the Coinbase cryptocurrency exchange and the US Department of Homeland Security. According to this agreement, the company undertakes to disclose all customer transactions, transfer the locations of cryptocurrency wallets to the authorities and information about changes in the geolocation of financial sending devices over the past 3 years.
All information is received online by the US Migration and Customs Police, from the Coinbase Tracer software module. Such an application previously collected and analyzed the relationship between addresses. In its original form, the program was called Coinbase Analytics, designed to implement the KYT mechanism - "know your transaction", which filtered suspicious addresses.
Such work was carried out by a large number of companies that needed government contracts. However, the exchange decided to bypass all competitors and offered the authorities its own program that collects additional information and is able to analyze the so-called digital footprint.
The US Secret Service became the first government agency that decided to use the program and license from the exchange. Representatives of the exchange confirmed the transfer of customer geolocation data. However, they justify themselves and report that they only collect information that is already available in open sources on the network. According to the management of the exchange, it does not transmit any confidential information to the Ministry of Internal Security.
Whether this is true or not remains unknown. If it suddenly turns out that the exchange still transmits private information to the special services, this may lead to customers starting to leave the exchange for other sites.
However, there is no certainty that other cryptocurrency exchanges are not doing the same thing as Coinbase. However, such a position of cryptocurrency platforms should no longer surprise. They need to comply with the law and meet the demands of the authorities if they want to have no problems with them. Privacy, as a principle of the cryptocurrency world, seems to finally disappear and everything turns into a standard bureaucratic system where everyone is watching everyone.
https://coin-signal.com/cryptonews/coinbase-monitors-customers-and-transmits-data-to-the-authorities/
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